Correlation Between Eli Lilly and Abeona Therapeutics
Can any of the company-specific risk be diversified away by investing in both Eli Lilly and Abeona Therapeutics at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Eli Lilly and Abeona Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eli Lilly and and Abeona Therapeutics, you can compare the effects of market volatilities on Eli Lilly and Abeona Therapeutics and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Eli Lilly with a short position of Abeona Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eli Lilly and Abeona Therapeutics.
Diversification Opportunities for Eli Lilly and Abeona Therapeutics
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eli and Abeona is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Eli Lilly and and Abeona Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abeona Therapeutics and Eli Lilly is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Eli Lilly and are associated (or correlated) with Abeona Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abeona Therapeutics has no effect on the direction of Eli Lilly i.e., Eli Lilly and Abeona Therapeutics go up and down completely randomly.
Pair Corralation between Eli Lilly and Abeona Therapeutics
Considering the 90-day investment horizon Eli Lilly and is expected to generate 0.73 times more return on investment than Abeona Therapeutics. However, Eli Lilly and is 1.37 times less risky than Abeona Therapeutics. It trades about 0.22 of its potential returns per unit of risk. Abeona Therapeutics is currently generating about 0.0 per unit of risk. If you would invest 78,722 in Eli Lilly and on November 9, 2024 and sell it today you would earn a total of 8,315 from holding Eli Lilly and or generate 10.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eli Lilly and vs. Abeona Therapeutics
Performance |
| Timeline |
| Eli Lilly |
| Abeona Therapeutics |
Eli Lilly and Abeona Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eli Lilly and Abeona Therapeutics
The main advantage of trading using opposite Eli Lilly and Abeona Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eli Lilly position performs unexpectedly, Abeona Therapeutics can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Abeona Therapeutics will offset losses from the drop in Abeona Therapeutics' long position.| Eli Lilly vs. Johnson Johnson | Eli Lilly vs. Bristol Myers Squibb | Eli Lilly vs. AbbVie Inc | Eli Lilly vs. Pfizer Inc |
| Abeona Therapeutics vs. Reviva Pharmaceuticals Holdings | Abeona Therapeutics vs. Athira Pharma | Abeona Therapeutics vs. Fortress Biotech | Abeona Therapeutics vs. ACADIA Pharmaceuticals |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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